CHUhl SCHOOL EDUCATIONAL TRUST (A Compny Limited by GrIn1¢¢> COVEkn'ORS' REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR Ef4DED 31°. AUGusf2021 mparty Registyaiion No. 01843219 Charity R¢gi5tr&tiOll No. 290143 Haysmacintyre. LLP Cban¢r¢d Ac¢ountants LondoD 'W4Z3Q2 11112r2021 COMPANIES HOUSE Alo
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CHEAM SCHOOL EDUCATIONAL TRUST REFEREIYCE AND ADMif41STRATIVE tNFORMATION The BD3rd of Govcmors pSent Ihe2T onnual report for the year ded 3111 Augwst 2021, tcsether with the audii¢d consolidated financial siatetntnts for the year, and confimi that they comply with ihc rcquirement5 of the Companies Aci 2006 and the Company's M¢moT3ndum of As50ciaiion and th¢ Chariiies SORP 2005. These financi Grai¢ments include the results of Ihe S¢hool's subsidiary, Cheam TradiD8 LimLied. REFERENCE & ADMINJSTIL4TIVE INFORMATION Cheam Srhool Edu¢ational Tnjst is a charitsble comparty ¢STablish¢d in 1984 with the School originally founded ift 1645. Thc Company Re8istratiou numlxT is l8432l9 and the Cbariiy Re8lSllation numbti Is 290143. Tk liability of its members is limited to £1 ¢Bch by gu3rdniee_ The regisiertd offi¢e and Principal addre55 of the Compatty is al Chearn School, Newbiiry Road, Headley. Be$hI, RG19 8LD. Governors Th¢ SGh4)tsl Govcmors, who are all also Charity Trn$rees ind Direthors of ihe Charilable Company for Companie5 Act pUoses, and also &rty past Governor5 who served during yearas ittdic4trd. a." Board Finance Committee Nfr K.D. Marsh Mrs W. BaTehelor {resi8ned June 2021) Mr 8. J. Reld {reSigd m¢h 2021) Mrs A.. E. H. May Mr R. Horn56y Mr N. Adams Dr T R Hand5 Mrs L J Moel%ryn-Hughe5 Sir M. J. Hjrford Mr S. Miners Mrs A. Jack13ppointd NoveTnber 2020) Mr H. Bond-Gunnin8 (appointed Apnl 2021) Mrs T. Reeve (appointed April 2021) Key£xecutives qndProlwioftalAdwsors 'rhe Head.. Ac(in8 Htad.. Dir¢cior of Firwice dnd OpeNions rT)FO').' M. Harris (res¢gn¢d Augu5r 202 1) T. Haigh (appoirtred August 2021) T_ Tabrah (resigned July 2021) L Jcnkins (appoinwl July 2021) Bankers.. N&titsal Westminstet Bank Pl¢ 30 Markei Place Newbury, Berkshire, RG14 5AJ Auditors,. Haysmacirttyrt LLP Siawwry Audiro 10 Queen Streei Place London. EC4R IAG
CHEAM SCHOOL EDUCATIONAL TRUST GOVERNORS. REPORT FOR THE YEAR ENDED 31" AUCUST 21)21 STRUCTURE. GOVERNANCE AND MAF4ACEM£NT The Charity is goverked by rhe provisions of the MemorandLLm aod Articles of Awiation last amended on 28th Julle 2005. The Governiiig Body Th6 Goyemitig i)dY is el¢cd 00 th¢ basis of nomLnations and leEneI2(10DS rtteived from various 50urcu, with a view 10 ensuring as wide a mix as possible of relevant expertise. MembtT5 USU311y 5¢rv¢ foT # term of five y¢aT5 and are Cligiblc 10 stand for r¢aelcction. Governor Truining Neiv incmbcrs lo the Board are iHdu¢ted inio the workin of the Sthool, and also the Comparby &8 a TC8i$iered charity. irt¢luding board policy and procedure5. Training course5 are organised by Ihe DFO and are anended #s required. A Tecord of training 15 on the membets file. Th¢ Board mects at a minimum onee each terni to deiernint tht 8cnet81 policy for the Trn$ and reyitw its oveTall managemetht and control. for which li 15 legilly responsible. The FiDce Committee meets at i rninimum prior 10 each iemily BoÈrd tne¢iing, specifically to review financial manaRemeTrt infomlaiion, a1 make Tecommendaiioiis to the Board. OrgoNisuiionulSiruciure Rel*7livRships The day to day rnThning OF th¢ School is d¢legaled lo the Head Jnd DFO who report the Board ¢a¢h term. The Hcad is 5UPP)rttd by the Senkor Mana8emeni Team. Other splF1¢ wb-¢omminecs tXLSt 10 provide a fon lor ihe remainder orth¢ staff. OBJECTS, AIMS, ORIECTtVES APID PRINCIPAL ACTJVJTJES The principal Object of the Chantable Trust, In accordance with MemorandLm atsd Articles of Association, i$ the edutalion of boys and gLrl&up io ihe age of 13. ObJ¢¢iive$forihe Yeor To achieve the hsghe5t academic Te5ults possiblc so thai all pupi15 gain enlry to thc senior school of their choice. 2. Continuou5 development of existing acad¢mic, pa$tal, $0¢18J attd sporting a¢iiYili¢s_ To achieve a styjnd financtal base allow for fit[u dtvclopmcnt of academic ind oiher aerivitics. Prix¢ipolAerivity The TTU5t conlJTtuts to operate a Preparatory and Prt-PrepaTalOry boarding arml day sch(M)I for boib boys and girls from 3 10 13. The fees are set at a level to ensure the financial viability of the Sch1 and ar a Itvtl that is con515ttnt with ptovidirtg a rlrsl class education to boys and girls_ Key mon4xemenlpersonnelrem¥ncratson key management petsoDnel rernuneration is ddermined by the SCI1,5 FirtaDce Committee againsl Sector benchmatking and in consideralion of othcr relcvant inf¢)nnation (i.c. gcographical factors). Any rcvi5ioDs Io T¢Muneraiion or Temuncraiion poliGy are put to the Board for approval.
CHIAM SCHOOL EDUCATIONAL TRUST COVEIUNORS. REPORT (cotttinued) FOR THE YEAR ENDED 31. AUGUST 2(121 STRUCTURE, COVERThcE AND MANAGEMENT (tontin) Opporiiimiiies Our School welMe$ pupils fiotn all baCk8U1$. To 2dmir a prospeciive pupil, we need to be salisfi¢d that our S¢hool will be abl¢ io educate and devclop a prospective pupil to the best of their poitniial. Entrance inteThiews aud 455essmeni$ are undertaken to satisfy ows¢lv¢s artd parenis thai wenlial pupils caft Cope with the pace of le)rning and brnefit frorn the education we provide. An individual's Konomic 51alus. g¢nder. rnce. religion OT di5abilily do not fonn part of our as5C5smcnt proc£ss. The School will make re&sonable adjusimethts to meet the neals of pupils or staff who are or who become disabled. B¥is&Ties, 4711ow&Aces & MiSSIOS The Govwiors view the Sthool's bursary awards as Important in helpin8 10 enstsre children from families. who would oth¢rwI noi be obl¢ ro afftird the f¢es. tAn ot¢ess ib¢ edueation the khool off¢ts. BursJTie5 are a¥ailablc to all who mt our general ertiry requiremen15 and are made only OD the basis of parentsLI means OT ro relieve hardshlp. The School does nol hove large endowmeni$ or invesunenis lo fi]nd any awdrd5 and h&s th¢rrfor¢ to ertsur¢ that there is a balance between fee- paying parents. many of whom make considcrable ptTsonal sacrifices io fiLnd their childrert's ¢ducatioTh, and i15¢ ben¢fiting from the award5. Thi5 y¢ar ihe Trnsi wa5 abl¢ 10 SUPWtrrt 19 pupils (2020.. 18) Ihrou¥h mearb5 te5tcd bursarie$. Fokir of the bursaFies were wonh 75% or re of the annual fee with a rther four ai 51P/• or mort. The cutTent total valut of th¢ bursarics. allowattces and T¢missio reduced th¢ annual fee itt¢om¢ by £439,38412020.. £531,0041_ The School also provided a 100% scholarship lo King5¢1ere P¢rfotming Art5 Coll¢g¢ (previou51y JLD Schijol of Dancit)g} for a child from the local cotnmunity to havt proftssional dancing lessons. STRATEGIC REPORT P£VIEW OF ACHIEVEMENTS AN'D PERFOIIthIANCE FOR THE YEAR Operoiion&lpepfftrniAttce ofihe Sthool Acadehiie oiid Pll51orol.- Totil pupil numbers ai Ihe end of the yuy wtTC 369 (excluding 14 NuTsery pupils). Beca$¢ of Coronavirus. only fl&xi-boardin8 arrangemeots were oFfer¢d wbcn Ihe Schfy)I's PTtmtses w¢r¢ op¢nJ geii¢rating £?46,055 of income 12020.. £51,484, which was heavity CoroThavirus-affetLedl. All pupils p8s5¢d thEiT Common Entrance exam inlo a scnior school of thcir choice. Tn addition. 5cholaTShsps ivcrt awarded by senior schcols io 15 of them (2020.. 131. In line wiib governtnent re5triciions in Telation to CoronaviTUS. the Sch1.$ premises ivere elosed to PUPTIS frorn 14 Jaiiuary to 8Ih Marcli 2021, covering most of the Spring tenn (although they did rernaiji open io th¢ cliildren of k¢y workers). Whilst ihe School's preniises were clostd. pupils wcrt educaied remotely via a virtual plarform which ift¢OryOT3ted live, teacher led. )Y)nS. Jts51 befoTe EJsttT. in line with government guidance. ?11 pupils retumed io the School premises to be educaiul onsiie. b¢DefiriDg from the frJcilities oTroffer attd time wilh peers. Facililies.. The Gov¢rnors are satisfied ih8L the S¢hoDI's fa¢ilitie$ offcr a broad Tangc of"tducatlODal facilitie5 10 childrerh of all acadcmic ability and Llltewts. The School. 8$ 2 mallcr of COUT$4 Cone$ io invest itl the m8inl¢naDce athd improveTneDt of eKtSttDg faciliti&s th infrastructure. DwL"ng the year. the Scbool rtsurfaced its iCTllllS COUrt$, rc-laid another of its cricket net syst¢JDg tevitalised the maln dining room and ¢olltinued a progtatume of upgrades to its IT infra5trncture erthancemen15 to varitsus health and safety Infra5tTucttLre, incl¥ding fir¢ alarnis. Str£¥1¢ devel•pm8Kl5.. Durino ihe year the School CODtinued to pro¢5$ irs reiaiionsbip ivith 115 corpordtt p3rners in China to develcp jointly Cheam branded Sch1$ in thai counry lirt the pilot yeat pro¢$910n of this ftan¢hising arrangernenl had on hold duc 10 coronavin). SiThcc the Summer thwgh. rcgulalory chan8es Jn China have made the pursuit of such venmres substantially mole challentrin8 and shortly after the ¢nd of the year ihc S¢hool agreed lo lh¢ teTtDillation of its existiug franchise agre¢meut with irs Chinese pattner. The Governor5 Continue to vifflv franchising as a way 10 div¢rsify the School's in¢ome streams and they remain orn to other Oppo111¢5 that may PTeS¢nt them$elve5 in other rnaTkels (not Icasl because of the ¢ultUTal exchange expeTiences partnership5 could present for pupils). Hoivever, they vi¥w a ieiLlVWaly pduse oki dCIEvi1 dt> - bc5t POSiiiOTh tlkc thi IcaL whilc Chcarn i: INitiOning to J llew Headmasrer.
CHEAM SCHOOL EDUCATIONAL TRUST COVERNORS. REPORT (continued) FOR THE YEAR ENDED31" AUGUST2021 BIVIEW OF ACHIEVEMENTS knYD PERFORMA14CE FOR THE YEAR {¢oJ)tlutstd) The Chearii Fowidation. a scparnre fvndTaising orgattjsaiion ¢stsbltshed in 2019. continues to Trise h]nds for th¢ provision of life changg buTsari¢s artd major tapilal projects ai IFLe School. The Fouttdaliott is a sep8rie chaftiy with 8 sepaT2te board of TNstee5. ough there is c105e cornmunication with the Gov¢TDOts of the School. Ptsblic BenÉfil.- Th¢ purpose of the School is the advanCent of education for boys and giTls from thc age of three 10 thirteen in ac¢ordan¢e with the Memorartdum and Articles of Assoctation. Save for iemporary furlDU8h paymeis during recent periods of Coronavirus disnjplion. the School in ihe nonnal course of events receives DO nd1Thg from the Stale and is thercftsr¢ obliged lo charge fee5 to its CUStoineTS (the parent$} to cover the temuneTaiiort of iis Staff. opeT3tinB C0S15 and the maintenance c0#5 both psent and in 85soc¢aied with ihe upkeep of the School's fabric and faciliries. The Governorn aim to ellsure Ibal the School's quality of education offered atsd tbe taciliiies that At posses$es should be, wherevcr p05sibl¢. of bencfit to the public and in parlicular the lotol ¢ornrnunity. In setting ihe School's obje¢tiv¢s and planning its a¢tivitie% ¢)ur Governors have given ¢ar¢ful ¢onsid¢r2tion to the Chariiy Commission's 8entral guidance on publLC bcrIt and in parricular 10 Éis supplemlary public bellcfii 8uidatc¢ on advancing edutstion arjd on fe¢4harging. The Gtsvemots acknowledge the guidart¢e alld will $ttiv¢, wberever it is reasonably po55ible, io follow li. Thc folloivin8 or8•nisation5 artd charities have bettfid from donations by thc School or by fuThdraisiThg even15 bcld at the S¢h¢)Dl". PALS," Ibe HoR¢y Pol Cbildren's CbaTity,' Th¢ Royal Bntish Ixgion throllgh the Poppy App¢al: Ihe Louise Purto Toy Appeal. Ihe Rtd Cross Ivar Memorial Children'5 Hospital.. UCL Greai Ormoiid Sireet lÉ)stiiuie of aiild Healili Ihrough Young Art 2021.. rh¢ H#mp$hirt Medi¢kl F¥nd. the Basingsioke Foodbank. Liiiks.- Oiir School is part of the I(al commuttity and a5 sKh we are keen to parnicipalt in any way we can. The School has 85SiStcd ¢hc local ci)rnmunity of Hcadley village iii maintaining the Brounds at Headley Community Shop artd Vill#g¢ Post otyiee: as well as Ihe Village Hall and lttal bus sheliers. The School also supports artd dottdes lo Ihe roaintenance fund of the local parish rhurrh w A5hford Hill. C105¢ relaiitsr*s to be fostered b¢ttv¢¢n the S¢hool atld two local ptimary schools. Ashford Hill and Kingsclere primaiy schools artd iiyo pre-SCh(lS. Si John's and SL Joseph's. Newbury. The Schwl conllnucs ID ass151 Ashford HIll wilh leaching and learning obje¢iiYes. Kingsclere Primary Sch(x)I has bertefiied from ihe seThices of the School's Hej of Miisic. Due to Coroll4¥iiUS, tb¢ use of Ib¢ S¢knol's fa¢ilitie$ by th¢ local crjmmwiity w¥ iie¢essarily restricied Thr khool LS pleased thai since the year end it is belter placed io resume supporting I(1 organisalions and groups wheneveT It is safe and abl¢ to do so. FJTr4ANCIAL REVIEW Th¢ fJn41nci31 r¢sult5 for the yw ?r¢ Shown in th¢ staQm¢nt of finanrial Jc¢ivi11¢5 on Page I I whirh 5how5 nei income, before transfers, of £104,942 (2020.. £219.670). Includcd thin thi5 ft5uIt IS 8 1055 of £4.335 {2020.. loss of £204.879) attribut•bl¢ to the School's subsidiary. Cb¢am Trading Limi¢ol. derivino from oogoirtg admiftistrntive expendIre. As a resiill of thc TKcessary move to ren1¢ learnin8 tn thc Spring itrn. 108dhu with recognition of the financial diffi¢uliies that par¢nts rnay hav¢ been facing as e result of Coronavinjs. tb¢ SchN)l irnplemeuied dis¢ounts to its nornal Cees for thai iertn, which were applied based OD yeat group. As a resuli of the shuidown of the school's premises, was inipaired b(rdIng intorne. There wa5 i degree of naturdl reductton in expenditure whilst the School sile w25 c105ed and other ¢0 saving measures w¢r¢ also implem¢rtied to rnitigare the Tedu¢ed level of income. In addition, the School Ulilised fLirlough grant5 made available from the gov¢TDmeni ID rellrion io Coronavirus ihat allowed it io support ¢fflployees who were wjable 10 work during the perLod tsf lotk.dow
CHEAM SCHOOL EDUCATIof4AL TRUST COVERNORS. REPORT {¢oDtiDv¢d) FOR THEYEAR ENDED3I" AUGUST2021 REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR {¢ontinued) Jnve5¢nsenlperform4nce The Trust deposits casb fiLDd5ai variablt rntes of intts¢stwith the Bank. Oilier inconie £4.315 of DoDatioDS (2020.. £5.0) wcr¢ re¢¢ivd during ihe ytar. Othcf fund5 were raised from lettings aDd ¢)n-site activity ¢amp5. Restrvu Policy Reserves at 31" Au8usI 2021 rotalltd £IO.157.749 {2020= £10.052.8071. of which £10.108.926 ivert unrestri¢d. After deducting Jmnunis applied rowards fixed assets totalling £1 1,048.172 and ih¢ rtiated secured loan of £450.c ihe level of free Teserves is £(489.2461 compaT¢d ro £1620.623) in 2020. The rcseryes policy of th¢ Sthool has been based on the Scknl's objetiiY¢5. 115 main fcaturts arc.. a) To achieve a margin of wotking capilal 5ufficieni to thable all 35pts of the School's work to bt eonducted in an orderly aDd effjcieni manner and 10 dul witb the managerneni of ihc School's trmjildings and mxiDtenance programme," artd b) To provid¢ ejnergency cover for unexpccd and unavoidable ilcrn5 of expci1dlDJ. ovcr and above a level which bc fijnded fvom c(ITrent incorre. PBJNCIPAL RISKS AND UNCERTAINTIES The Board Gontinu¢5 to keep the khool's aGtiviti¢s unJEr review and consider ihe major risks faced in tach ofthe principal areas of Ibc Sch¢Jol's operdtions. In ibe opinion of the Board the School h&8 tsiablished resorLTttS and review sy51tTns vhi¢h. und¢i nornthl condiiions, should allow thes¢ nsks lo be rnitl8ated 10 an atteptable level in its day-ro4¥y operations. ITh particular, the GovcrnoT5 hvt Id111r1d Ihe major risks a5 being.. Global lit4lih pan(kniiL.. lik¢ alli Jost all oTgèni5ts1ifjr thc ?>01 CODtinucd to bc impaclod by C•tot)aVLniva artd Ihi.", experienced a[ther imposed lockdown during the Spring temx. The Scbool coniinknes to Lmplement plaiis and follow guidance from the govemm¢nt and prof¢ssional bodies lo safeguard the health and safety of the School communily {pupils. sthff and parenis). These plans are reviewed and amended 00 a regular basis 10 relleci the laiesi guidance aod the evolving LU¥wi1IQeS i'elated io Coronavwus. Thc hool hlls Pl remote l¢trniTLg plttiform for pupi15 Ivho Jr¢ un3ble to attend s¢hool becaiise of Coronavirus and older pupi15 have dcvsces whlth bener facilitate their acc&%s 10 it. Thc rerMte Itaniing plaiforrn at)d olT¢ring continues w develop and improve as experiente of usin8 It matures a¥ntsng51 ly)th sr8ff and pupils. From a rinancial perspECriVe. the short-ierni IpaCI of CoTonaviTUS ha5 been closely managed artd the School has p¢rfonntd a detailed review of the potcniial 10ts8cr-ICrnI 1114>lCt of Coro2MvinLS or a similar repeat ¢pisod¢ on its fJnaDcJal posiiion. The S¢hool conriThues 10 havr substantial ¢meFgen¢y resctves al its disposal on lis own balance sheet" additionally il continues to liaist ClulY willi its bl-¢i'5 J'kxdrdinx tlic kvKI of &lditi¢)nal facilitic3 t)eceury to rnanaso any financbal intgTrupiion=. should they arise. From sn operational Per$tive. the Gov¢rTh)rs are sat15fied that Ihe School has adcquat¢ sysiems and proc¢5scs in placc kn ord¢r to pmttti thc safcty and wellbcin8 of its staff and pupils aod continue to provide quality edll¢atioll JJJ th¢ fa¢¢ of any resum¢tl disnjptioi) iesultitsg from tb¢ Cor(puxviru5 epidemic. DrainaliL tsll Ill pLiyII i)buL[s.. sirnitgics &thd pltsns Af¥ In p.ltsce w cnArt the School rornainG an attrnfjlii'c option foi fviu parents boib academically and in ibc provisioD of exccllmt facilities. Howcver. thc Governor5 recognist that the reputstbOD ot a scbool can be destroyed tbTou8h the actions of ollr$ bolb pasi and present irt a v¢ry sbort titne )nd could Te5uII iii dramatic loss of pupils. To rnirigate Ibe5e risks ihe Sch¢y)l ensures appropriate policies kne in place. which are regularly reviewed by ihe Gov¢Tnot5 aTha PT(K¢dutes are moniwed by Gov¢rnors. Approwia training is undeFtaken by i115Laff on a r¢gylar basi$ Jd 8OLKi cotnmuDICa¢iOD 3fDong 5thff. par¢nfs and Governor5 15 a CODtinuin8 focu5.
CHEAM SCHOOL EDUCATIOYI AL TRUST GOVERNORS. REPORT l¢oniinued) FOR THE YEAR EP4"DE0 31" AUGUST 2021 Withdrawal of capiTrl projecr loan fiDanciDg'. ¢ash flow fort¢ass are regulaTly prepartd by the DFO aDd reviewed by the Financc Commill¢¢ ai their meetings to eosure the School has sufficietht liquidity 10 operate and mcei it5 liabililics as they rall due. The School has a strong relat¢on5hip with its baDker5 and maintsins Fegular c4smmwiiuiioo regarding ¢hc financial perforniaDce of the Scbool and its budgcts and plans for futtkff years. Unforeseen evenrs.. the School regularly TCVi¢W5 inwrancc rovcrdge to eThswr that it ha$ appropnate COVeT to offset thc impact of any serious ev¢nts oc¢urring Ihat may impaa either ihe ability io prnvide educaiion io its pupils or a sisnificani detiimental impact on lis financial 5tsbility. Loss of 'key player.: a strong senior rnanag¢Tnenr is in pla¢¢ to hrlp miDg*¢ the impaci of The loss of a key play¢T. FUTURL PLANS The Governors, objectives and strategies are Ttyiewed tv¢ry year. The Majority remain un¢liang¢d and they roniinue to b¢ to tnsuTe. thr4)ugh sound financial dTrligen¢e, that the School coniinuts io be a markei leader through Ihe provision tsf modem facilities and fiTSI class ttaching 5tsff. The Governors have rcYie¥v¢d and approvcd the busin¢s5 plan for the next financial ycar arHI also reviewd Ib¢ outlook foi the rJ¢Kt five y¢ary in¢luditig appropriate scet)arto analy51S. Although rhe Corort3vjnJs epLd¢mic has had a short-ierm negative impact on the School's operations, the Governors do not believe there is a rnaLtri81 impact on (he School's longer tem objective5. plans and ovrTall Strdlegy. However. Ihe Governors aGknowledge thal lh¢ turTertt operating envirotknntni rtntsins uncenaiti and thuefore thcy regularly rtview th¢ impact on straie8y and, kn parnicular. the Schc4)1'5 loDg-terrn financkal stability. SI"AI'KMENTOFCOVERNORS' R&8PONSIBILJTIES Th¢ Governor5 ar¢ SPonsible for pr¢paring th¢ Annual ryit and th¢ finarteial 5ts1em¢ots in accordance with applT¢able law ond unli Kingdom Get)erally Accepted Accounting Practice. Company law requ]Tes Ihe GDvemDr$ 10 prepare fin8rtC181 slaMeiS for cach financial year which givc a true and fair view of the slate of affairs of the Trust and of the result of the TTUSt for t( per11_ In preparing fusancial statements. the Gov¢mor$ are required to: Select suitablt a¢coun(in8 policies and Ihtn apply ihcm consi51¢ntly' Observe thc PTincip1¢5 and mcthod5 of the Cl11<$ SORP- M3kc judgcm¢nts and esiirnate$ ihai aTe reaS0Tble and prudeni,. PTepaTe the financial si8Mei$ on the 8oing concem b"$ unlc5S It 15 inappropriatc to presume ihe Tn151 wll coDtinue in business. The Govcrnor5 are rcsporsible for ke¢piryg prop¢r arting records which dis¢lose with reasonsble 2ccura¢y 01 apy limc the financial position of the Tnjst and io enable them 10 enSe ihai the financial siaiemenLS comply wth the Companies Art 2006. They are a150 re5PODsibl¢ for 5afeguaTding the of the Tnst 3Dd h¢n¢e ftir raking reasonable sieps for ihe prevelltion and dekckn.on offratsd and other irrt8ular aclL¥itie5. So far as each of the Gov¢moYs is aware & th¢ tsme th¢ ffport bs approv¢d' There is no relevant audir knf¢)rnialion of which ihc Trusi'5 auditors are unaware. and The Governor5 have tsken all St5 thar they oughi to hove ¢aken to rnake thernselves aware of any relevanl audit infomiation and to esrabli5h thai the Audito aware of thar hnforniation. The Governors. staternent, incorporatin8 the Strak8ic ReFrf)rt is hereby approycd on bchalf of the Governors on 12th November 2021. R M#rsh. ChAirmx 12" November 2021
INDEPEf4DENT AUDITORS. R£POR.T TO THE MEMBERS OF CHEAM SCHOOL EDUCATIONAL TRUST Opinlon We have audited the ¢onsoiidaied fiTt#ncial stsiem¢nts ofchearn S¢ltooI Educational Trust for the year eDd¢d 31th August 2021 whi¢h COTnpri5e the Consolidated Stsiett)enl of Fitiartcial Activities: the Group 2nd CbaritablE Company Balan¢¢ SI¥1. Ilie CVjJ1l&1t1 Siatenicnl of Cash flows and nolc5 10 thc fin&ncial stattm¢rtts, Includirtg & 3UTnmary of $18Dificant a¢¢ouDling polk¢ies. Tb¢ fLnaD¢ial reporting framewo tbat has been applied in their preparatton is applieablc law and Ulliied .gdoM Accounting Standards. ittcluding Finaftcial liwrting Staodard 102 nie FiNavcit71 Reponing Siartdaid appliL'tsbl in ihe UKond Repilblic ofJrelopJdlUDLied Kingdom GeiJcr311y Accepted AccountllJ8 Pra¢tiee). In ow opinion. the IIDanci415ts1ements: sive a try¢ and fair vicw of th¢ strt¢ of the Group and pafen¢ ¢harlble coinpany'5 affairs as ai 3111 August 2021 nd of thc Group aAd ptsreni chafttoble compony'$ not mtsyometyt 10 fiui:, Jncluding the inuome and expeT)diThii&. for the year then erbded., have beert propvly prepared in ac¢ordanre WLih United Kingdom Generally Accemed Accouniin8 Practi¢e; and have be< PTepard in a¢¢orfart( with the requitem¢rLls of the Companie5 A¢1 2(KJ6. Ba$is for OPiniOD We conducted our audit in accordance with Intcrnational Standards on AudiiLtt8 (UK) {ISAs (UK)) and applitablc law. Our r¥Sill)ibIlItIs undcr thosc $¢8nd2rd3 atc fith¢r dribed in Ehc AudilOT'S fcPOnJibilirics for ihc oudii of Ihc financi&l J14t¥l¥11t> ctiOn •f our report. W¢ Jre hndLycnd¢ni of thc wup in occordantsc iv&th the cthiul roquirom¢nir thai awo I1¢¥11[ to oui audit of the tinaniiol stoiementa in ihc UK. IntludiD8 ihc FRC'5 Ethictsl 8iwidTrrd. ivo hovo fvlfillc4J OVF oihwr ctliical rcJpon31bilitiC• in ac¢ordonc¢ ivilli th¢s¢ r¢quircmcnL. Wc bclicvc thrÈt thc oudii evidence we havc obtaittcd i suffi¢i¢nt and appropriaie pmvide a bayis for our opinion. Conclusiofts relating to going concern ID auditing the finan¢ial siaiemenrs, Iv¢ have concludLxI tt the tru4ee' use of the 80ing concern basi$of accourtting in the preparation of the financial Matements 15 approwiate. Based on rht work wc hav¢ perfomcd. wc havc not id¢rbtified any material uneeftaiotics rtlalittg to events OT fottditions Ihat, individuolly or collectively. may c&%1 signift¢Ani doubt on the Gtoups and of the Partht Charitable Comparty's ability to eonrinue as a 8oing conccrn for a pcriod of ai lea51 twelve months from when the financial staitrnen15 are auihoristd for issue. Our resptsn5ibiliiies and the responsibilib¢S of ihe governors With respe¢t io going concern Jre describcd in ihe relevant sections of this report. Otbtr Informailon Govbniors ar¢ Ttsponjiblc for th¢ othcr inforrnaiion_ The othcr iNfomwrion tompTI" Ihc infomoiion in¢ludcd in thc GuTr¥rnoL"s' Aiinuol Rcport. OUT opinion on the finenciol ttstem¢nt doe Tiot ¢ovcr the otlirr infornitttion and, ex¢ept 10 th¢ ¢xicnl oiherwisc cxpli¢iily 5t31cd in our rcpon. wc do not express any form of &ssutance conclusion thcreort. lil tonncction with our Dudit of tht finon¢itsl OUF Ftr3PDnJibility ip to read the othor inforniution and, in doing 0. ¢onsLdcr whtthcr ihc othcr informllrion i= maicnally inGOt)" -tent with the finanrial rlatem¢nL or our knowlcdgc obtaincd i audit or othcrw73¢ 4Lppcufs to be rnat¢riJJlly MItat¢d. If iv¢ idcnrify cb moicriol iDconsiplenCiCS or appoi¢nt matIllI Il1155tatem¢rtt3. wc are rtquired to dclcrn)Jne whcthcr the tt IIMteriJl miJJluicoicnt in tbc ¢121 =titcmcntr or ia*rial misstatemerti of the oih¢r infomiotion. If. b¢0 on thc work we havc porformcd. Ivc conclude ihot th¢re i maierial misst81em¢ni ofthis other inforniaiion, we arc required th report thai faci. We have nothing to report in this regard. Oplnions on fjiher matters pr¢Kribed by iht CompADies Ati 20Q6 In our opinion. based ors ihe work und¢rraken the Course olthe audii.. tli¢ infom)auon Biv¢J] in the Governots Alltsual Report (wlll"tb in¢orporat6s th¢ Stregi¢ report and rbe DireOr8. repvn) lor th¢ fin4ncilll ycllr for wliich thc fjnanciol -ialcm¢nts ore prcparcd i" conJiAcnt ivith Ihv financial ststem¢nts.' and the GovernoTS' A Thnual Rcport (which incorporates the stratwc report attd the Dire¢tOT5' report) has b¢en Preparcd in actorijance with 3pplicabl¢ legal rtqUiTements.
INDEPENDENT AUDITORS'REPORT TO THE MEMBERS OF CHEAM SCHOOL EDUCATIONAL TRUST (continued) Mgtters on which we are required to Teport by ¢x¢eptiOll In the light of the knoivledge aud utsdersiandittg olthe paTerit charitable company aAd Its enviroDtneni obtsined in ikne Course of the audit. Ive have not Ldeniified malenal mis5UlemeDts in the Governors, Annual Report (which incorporates Ibe strategic report and the DirectOTS' report). We have nothitlg to report in TesFCt of thc following TDatters in r¢liory to whicb th¢ CmpanieS Acl ?006 requires us to r¢port io you If. ovr opinion.. adquate accounrirtg records have not betn kepi by the charirable company. or returns adcquaie for ollr audii hav¢ ot b¢¢r) received from branches not visii¢d by us. or the charitable company financial slalements are nol in agreemeni WLth the accounling records returns. or certain disclosur¢s of Governor5. t¢murteration $pec)fied by taw art rtor made" or we have noi re¢eived all the infomtion and explanations we require for our aud"Li. Responsibilities of Governors for the fiD3ntilll M#ttfllEnts As explained more fvlly in the Govcrnors. rcspoThs¥bilitics statcrDent set out OD pagc 7, the Govcrnor5 (who are also the Directors of the cbaritablt ¢ompany foi tb¢ pllrposes of company law) ate respoDsible for the prepATation of the finèncial Stat¢in¢nts and for bcing satisfied that Ihey Bivc a InL¢ and fail view. and for su¢h intetnal r()ntToI as ihe Governors dtrcrminc Is nccc5sary io enablc the prepardlion tsf financial steM¢nIS ihal arc frec from material misstaieinenl, whether due to fraud or enor. In preparing the financial stJlemenis. thr Governors ate rc5ponsible for a5%essing the charLt#blc company's abiliry lo coniinue as & going conccm. d15closin8, as applicable. matters rel8red to going concern and using rhe going eort¢em basis of a¢¢tsunting unkss Ihe Gov¢rnoT5 tither iDt¢nd ty liquidai¢ the gtoup or ihe poienl thantable ¢ompafiy or lo cease oper81ions, or have no realistic altcn)ativ¢ but 10 do 50. Audttor'5 responsibilAties for the audit of the financial staftfflents Our objetlivts are obtain reasonable assurdncc aut whether ihe finaneial s12temenis 25 a whole are frce from muieTial mi5stsiement, wheihcr due to fraud or error. and w issue an auditor's Tepon that inclvd¢s QUT opinion. Reasonable assurance is 8 high level of assurantt but Js not a 8uarartiee that art audit eonducted aceordatjce with ISAS (UK) will always ddeci a maierial niisstatrmeiit whcn li tXl515. Misstsicments can aT15C fTOrn fraud or errtsT and aT¢ considered matetial ir, ndiYidu¥lly OT in ihe 3ggregaie_ they could reasortably be ewied to Jrtfluence the economLC decisions of U5¢TS iaken on the basis of th¢ financial suicments. IrTegulaTilies, in¢luding froud. are instsn¢¢s of non40mplianc¢ with laws attd regulattons. We design procedures in line vith our rPOnSIbl71ticS. ouilined ab)vc. 10 ddect marcri31 mis51al¢m¢Dts ID Tpt of irTeEulaTities. includin8 fraud. The extent 10 which cur procedures are capable of derecting irre8ularitie5. including fraud is derailcd below". Based on our under5tsndin8 of the charitsblc company and indu51ry. we iden(ified that the principal risks of non-compli2n¢e with laws and regulations, Safeguarding and Educati(pn Acr. GDPR. company law atkd chariry law applitable in England and Wal¢& and ive considtr¢d th¢ ¢xte0t to wbi¢h o0th-¢omplian¢e might have 2 material effect on the fujancial sraicmeThts. We also ronsid¢rEd those13ws and r¢gulaiion5 thai b¥ve a direu impa¢t ott the Pl¢ption of the Ooao¢ial str1effDts su¢h as the Companie5 Act 2006 alld CtrLariiies Aci 201 I. We ¢valuated martagcmetLt'$ irKcntive$ and opw)rtunities for fraudulent manipulauon of the financial 51atememis (iftcluding the risk of override of controls) and deterniined that the principal risks were related io management bias in acc(¢7ng estimates. Aud¥1 procedures performed by the engagemeni ieam in¢luded.' Inspection of c0rr¢5pDndCC with gUla[S and authoTiries; Discussions with nthnag¢ty¢nt iD¢ludiug ¢oDsid¢rniion of known or susp¢c(ed inslan¢¢s of noncompliance with laws and iegulaiion aThd fraud. Evaluating man#gemcnl'S ¢ontrols designed PT¢v¢n¢ al d¢iert irrtÉulari¢ies- Identifyin8 and t¢sting jouTh¥ls- and Challen8ing assumptions and judgements mad¢by managetnent io their uiti¢•l a¢couniing estimaics. A fvnheT description of ow responsibilities for the atsjii of the financial StatenieI$ is locat&J on the FIntial Reportin8 Council's w¢b5jte ai.. wivw.frG.o sRI)ili . This dcsrripiion forns partof ouraudtlor's report.
INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF CHEAM SCHOOL EDUCATIOIY AL.TRUST (contiiiued) Use of our rtport This rLpvTt is iiiadb 301clykn th¢ Group Jnd cthoritsble con1pon5 mCmbW. o bcrfiy., in occordDncc wirh awptCT 3 of Port 16 vf dii Coiilpanics Aci ?OQ6. Our oudii wotk h- bccn undcttsktn JO thai we might sifyio 10 Ihc thJritoblc Cornpan m¢Jnb¢rs those matt¢T5 we 8r¢ required 10 statr to th¢m in h Audilorfs repon aDd foi Do other purpose. To th¢ fiLll¢st ¢xi¢nt pcrroiltcd by laiv ive do uo! )cc¢pi or 3¢sume responsjbility to Anyolle other ii13n charitable egmpauy gnd the ch3riible company's mcmbcrs as a body. for our audil work. foT this repoo or for ¢hG opinion5 wc have fomKd. Kathryn Burton Senhor Siatijlory Auditor for and on behalf of HaysmatinTyre LLP Slatulory Auditors 10 Queen Street Place London ÉC4R IAG Dale.. 22 November 2021 10
CHEAM SCHOOL EDUCATIOYL AL TRUST CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITtES FOR THE YEAR EIYDED 3151 AUGUST 202] General Unrestri¢ted Fund 2021 Othtr Funijs Total ToiAI Funds 2020 1Tr4COME AND EXPENDATURE Notes 2021 2021 INCOME FROM: In¢oi)ie from chirltable actkvities Tuition fees Disburse4nents and exirns Other aThcillary incomt Inv¢stth¢ni$ Intcre51 r¢¢eivable Voluntary sources Don3ti0ns and appeal income Other iocome Goyenunent granrs Other income Trading irteome 6.845.770 l8l.841 19.528 6,845,770 181.841 19,528 6,777,037 16.713 911 9,506 4.315 4.315 5.000 177.783 4,402 177.783 4.402 402,863 3,149 2.358 £7.234.550 £7.234.550 £7.328.036 EXPEIYDJTUREON: Rslsittg funds Finance cost$ Prtpaid fe¢ dsscouni Trading expenditu J8,826 5.IW) 4.336 18.826 5.490 4.336 ?6,883 8.834 2,800 Charitsble activities Scliool opeioli&Jg 15 Teaching costs Welfare Prcmises Support costs of 5¢hoolin8 Grants 4.233,827 651.972 1.306.207 908.467 4233.827 651,972 1.306,207 908.467 783 4,2i2.624 635,189 ,282,427 895,498 783 £7,128,8?5 £783 £7,129,608 £7,108,366 Net income before transfers 105.725 (783) 104.94? 219.670 TraD5fers berween knds Net income after transfers 105.725 (783) 104,942 219,670 B81art¢¢ brougbi forw¥d 10,W3,201 49,606 10.052,807 9,833.l37 BalaDCC C4FTicd fonward 16 £10.108.926 £48.823 £10,157.749 £10,052,807 All 8¢tiviti45 are coniinyinB. Ali the tund5 are utwrriCt apart fTom the Other Ful. which comprises the Leamin8 Support Fund. No summary irKome and ¢XF*rhJilure account ljas bctn prepared bccws¢ thb5 infornalion 15 clcarly identified in the atM)ve stOt¢LttCDt. Tbe a¢¢ompanying notes ar¢ an inwJl part of ibe accounis. The results of the rAreDt company are not pr¢5eDt¢d in aecoTdanc¢ wih ¢xernp(Lofb5 PTovidEd by the Companies Aci {21)06)_ The rcsuli foi the year was a £109.277 SluS {2020.. £42i.811 Surplus).
CHEAM SCHOOL EDUCATIONAL TRUST C•mpin) Number: 01843219 CONSOLIDATED AND CHARITY BALANCE SHEETS AS AT.3151AUCUST2021 Croup Schwl 2021 2021J 2021 2020 Not¢5 FIXED ASSETS Tongible fixed &8seis Investments 10 11.048,172 11.173.823 11.048,172 11.173.823 CURRE1 ASSETS Dtbi¢tS Frts and extrns irt irreats Other debioTS, Stock5 and PTepaym¢n¢s 6.?24 202,564 4,787 382,71 6.224 202.564 4,787 382.71 Cash and Gash cquivalcnts 1,238.865 ,639.810 1232.508 1.627.387 1,447.653 1109,416 1.441.296 1.892.5 CREDITORS. due wiiliiD OL)e year Ftts received in advance Prepaid l¢¢s Oiher creditors Bank loau 12 {594.983) (250.0241 (544,655) (450.000) 152?.723) 1367.6411 1601:30II (31)0:1) {594.98il {250.024) 1542,405) (450,000) {522.7231 {367.6411 1601,3011 1300,0001 12 13 {1.839,662) (1,791.6651 (1,837.4121 (I.791,f5l NET CURRENT ASSETS/LIABtLITIES (392.(M)9) 1215.451) (396.1 16) (223.894) CREDITORS- Lhjc afler onc y¢ar 13 (498.414) {905.565) {498.414) 1905,565) TOTAL ASSETS LESS LIABiLITIES £IO.157.749 £10.052.807 £IO.153.643 £10,044,365 UNRESTRicfED FUNDS 16 General Fund Learning SuppDrt Fund 14 15 10.108,926 48.823 10.003,201 49.606 10,104.820 48.823 9,994.759 49,606 £10,157,749 £JO,052,807 £10,153,643 £JO.044,365 The ftnancial 5tatemtnts approved and authorised for issue by ihc Board of Governoys on 12th Novemb¢r 2021 and were signed klow on irs behalf by.. R Marsh, Chairman Sir M Harford. Govwior The accompanying notes are Intew] port of the aG¢ounts. 12
CHEAM SCHOOL EDUCATIONAL TRUST CONSOLTDA TED STATEMEh'T OF CASH FLOWS FOR THE YEAR ENDED 31" AUGUST2021 Y021 2020 Cash flow from npergting activitie5 r4tt sn¢ome for ¢h¢ y¢ar Depreciation Interest re¢ei¥&bl¢ Interest paid {IDcTeaseydetrea$e irt d¢biors tncrea5cJldecreascl In crcdiiors 104,942 351.382 219.670 347,638 1?.S(i61 26.883 82.107 (279,296) 18.826 178,710 17.607 N¢t ¢ash 8enerat¢d froth 0rating aeijvilies 670,556 387,496 Cash flow from Invtsting activitles Interest rec¢ived Purchase tsf fixtd assets 4,201 (240,999) (225,7311 Ntt ¢ssh used in investing Activitle5 (224.820} (231.4931 Cash flows (rom fiD4ncing o¢tivitie5 BaTJk loatb repaymertts Iiicreasel(decreasel in prepaid fees Inci) Iiit¢iesi paid (100,000) (?76.7611 (18,826) (200,0) (380.2141 (26,8831 Net cash used in financing activities (395.587) {607,0971 Intreaselldeerea5e) in cash and cash tquivalents £50,149 £(451,094} Cash and cash equivalents as at IA S4JtembtT 2020 ,188,716 1.639.810 Cash attd cash ¢quival¢nts as at 319 Augu5L 2021 £1,238,865 £1,188.716 Rec•ncilhation of net debt Balance 1° S¢pt¢rnb¢r 2(12 Balance 311t August 2021 C*shnoiYs c.ash at bank and In hand Debt due wiihin l year Debi dlle after l year 1,188.716 (450.th)0) (lo0,L) 50.149 1,238,865 1450,0001 i¢Jo.( £638.716 £150.149 £788.865 13
CHEAM SCHOOL EDUCATIONAL TRUST YEAR ENDED 31Jt AUGUST 2021 ACCOUNT114G POLICIES ACCOUNTING POLICIES Clirdui S¥iJrM)l Ttst 15 a chJritablc coThpJny incorpopaicd in tand WaloG. Furthvr Gompaoy infonD21ion can be found OTh pag¢ 2. Basi$ of ActOtttIng The fiiiduLial >iaitmetsts h&vts btrn prcwrd undet the hJ"#oricol c051 cottventioo athd in a¢¢oidan¢c with applicabl¢ accounting standards #nd the Ststemenl of Recovrynended PrncTie¢ Accounting and Reponing by Cliariises (sor 20191, the Companjes Aci 2LK)6 and FRS 102 ihe financial trportlll8 SthlldaTd applicable in the UK aTrd the Republic of Lr¢lJnd. The accounis PTesellt the coThsolJdated 5tat¢m¢oi of fuJaDcial aciiviiies (SOFA). Ibt consolLda¢td statcffl¢nl oltash nows and the tonsolidaied and ScbrM)I balanee shetts comprising the consolidation of the Schtsol and with its wholly oivned subsidiary Cheam Trading Limited. No separnk SOFA h•s been PT¢s¢nied for the Sehool aloiie. as pennirted by Seciion 408 of ihc CompanLes Act 2(. The SL"hoDI reviews dt)d iiithiifuY> ils fit)artcial position iloxly on a r¢Eulsr btssiJ and alm modol. fufuTO slIal0. ¢n5ure proactive yep$ are iaken io prot¢ both the fitwi¢iaJ resilien¢¢ of CUTreTJi 0rakOnS, including rlie shoFt- i impact of Corot)aViTUS or other tsnexpccrcd eveDLS. and its lon8er-ternJ fmancial siability based OD a range OF oih¢r fattors. Thesc fo&$[$, ID addition io pttre5ses, eontrts15 and goven)aCc in this area, eDablt a timely responsc to nerging issues and coniLngency planning for unctrtainiie5 presenied by the wider enviroryrnenr. Th¢ School Teiains strong link5 with its baiikers who coniirtue to make available approprLaie f2eiliti¢s 10 support ongoing •Llivili¢s. Ila¥iii8 its UlTt finanual rc30urc¢-J. lhc Ellnding fncililics a%'ai13ble to rh¢ School. and futu[¢ projecied cash flows. the Govtmors hav¢ a reasonable expeclaiion ihai ihe School will h8v¢ adequate Te50urces lo ¢onlinu¢ ils a¢tiviii¢s for the fortsttable fumrt_ The Gtsvcmots believe there are no rnaierial uncertainiies relaiing to going concun and as such coniinuc adopl Ih¢ goiiig concern basis in Preparing ihese financJa] $teMents-. The following accounting policics have b¢eD applied coDsisrcDtly in de41irtB with items whi¢b are ronsidered Inaierial in relatLOn to the Sch(1,$ fitbathciil sraiem¢nts. bl Fees receivable and similar in¢orne Tuiiion ftes art Stated after deducting allowan$ for aw3rd$ and h¢r Temi5510n5 Oth¢r educational incotne comprises incomt Prom school outings, acti1£5 and other relgied income. These soknrce% of ineorne aTe included in th¢ accounis when they become receivable and their value ean be measwed 1th reasottabl¢ piobability. Expenditure ChaT112blE a¢iivity costs ¢ompTise5 all ExpendiTure direcily relawl to the objecLS OF the School ittcludiog direei staff ¢osts aittibuiable 10 eoch aciivily. SupFM)rt cosrs included wiilll"n the charirable acitvily comprise ihe e05ts of all resouTees utilised directly LO SUPPOrt th¢ khool'5 PTlrnary Jclivilies. Govern?e ¢osts are Ih05e tosts incurred in ¢oDnecbi>n ivith the governance of the ¢tIlty and its assets and are primarily a5%>ciared WLth consiiDJtional and 51atutOry requirements. d) PtlJ510A ¢OStJ All staff {(eathing and rton-iearhing) arc njembcrs of defined ¢ontributioFt beEn¢5. where required by purstsallt legislallon. which comply with the requiternents for a stskeholder pension sch¢me. The School withdrew fTom the Teaehers. Pension S¢heme ok 31" D¢¢erllbei 2019. S¢¢ Noi¢ 8 on p#g¢ 16. Fixed Assets All iiem5 of a capiial ttawre with a coffibsned value ofover £61M) are eapitalised. Depre¢iation is ¢alculat¢d so as to wiilt ofEihe cosi of tsngible fixcd a55cts on a straight-lin¢ kn"Is over tb¢ eXpted us¢ful economic lives of the assets concerned. The prirÈcipal rates used for this purpose are.. Freehold18nd Freehold building5 & improvement5 Furniwe, fixDJres and equipmeni Motor vehiclcs Computers Frethold land is not dtpreciawl 2#A 25% 14
CHEAM SCHOOL EDUCATIOIYAL TRUST YEAR ENDEII31' AUGUST 2021 ACCOUNTING POLICIES (continutd) ACCOUNTtN¢ POLICIES (£oAtinued) FiTr#neial lfjsirutyeois Th¢ Trust only bas financial 8s5ers and financial liabilitt of a kind that qualifv as basi¢ G]Janeial iThStruttJents. B3Slt rinancial ii)slwmcnts ar¢ Iiijtially r¢cognLStd ai ts)saction value and subsequenrly measured ai iheir 5ettlemenr value. Op¢r2timg Leases Renial charge5 art charged on a $trJight-line basis over the iemi of the lease. h) Debtors Tra(k ènd oihtr debrors are tecogt)Ised at the sdilemeni amount duc afttr any discounts offcrcd. Prcpayinents are valued ai the amouni prepaid nei of any disco15 due. CsTh at bank and in haiid Cash is Tepiesenied by Gqsh in hand and deposits with finaThcial insiitutions repayable withour penalty on noticc of nor niore Ihan 24 hours. Cash equiv¥lenlS 4r¢ highly liquid iovesitnertts that nxatut¢ in no more than three months from the date of acquisition and thai are readily convtniblc 10 kiiown amowits of cash with insignificani risk of chan8e in value. i) Credilors and Provi$ions Crediiors and provision5 are reco8nised whcre the Sch1 hos a pre5cnt obligarioii Tesulting from a pasi event that will Probably result in the trdiisfeT of funds io a third party and ihe amouni due 10 settle Ihe obligaiion can be measured or csiimared reliably. Cr¢ditors ar provbSiODS r[mallY recogtsiged ar the 5eitlcmeni amount afier allowing for any discounts due. k) Fund atcounting The fitnds of ib¢ School are acrounied for as Un51¥1¢¢¢d or r¢5tricted incorne, in accoidance iyjth the tern)s of tru$1 imposed by the dortors or arty appeal to which ihey may have responded. Urtrestricted Income belong5 10 the School'5 COTP)rale rc5¢TVe5. 5p¢ndable ul thr discrl0Th of the Governor5 ¢ith¢T (o further the Srhool's Obj¢¢ts or io b¢nefii th¢ Schwl itself. Whcrc the Govtmors decide to ser a51de any part of thes¢ fiinds to be used in fvhjre for some 5pecifK purpos¢. tbis is OCCOLoÈed for by transfer to the appropriate designaied fi. DesigDated fiinds are a parti¢uior fom of unr¢¥ricttd funth COthSiSling of amounts, which have bett) allocated or designat¢d for specifjc poSe$ by the Govetnors. The use of designalcd futtds Temains a( ¢he discreiion of Governor5. Critical 50urct5 of e$timtion uDeertginty 2nd a¢¢O¥lliing judg¢ments The governo consider there io be the following key sources of esiitnalioD UDcertaitLty and have thereforc applied jud8cment. Useful live5 of red 8sset5 The useful Iiv¢s ovu whiclL fI¢d assets are dépr¢ciated are esiimated by reference to hisriCAl experience of th¢ timt assets are retallxed and utilised by the School. Empl&ye¢ beft¢fits Employee benefits are accounttd for in Ihe in whi¢b th¢ employec's %rvic¢s w¢r¢ provided. Employee lerminatlott pxyments Emplgye¢ ierniinaLiOD pents art accound for in the F<r1 in which the ernployee ccased ¢mployrnent with the School. 15
CHEAM SCHOOL EDUCATIONAL TRUST ,YOTES TO ACCOUNTS YEAR ENDED 31" AUGUST 2021 CJIARITABLE ACTIVITtES 2021 2020 Fe¢s r¢¢civ8bl¢ th)nsist of". Boardins and tuition fees Le$s scholarship4 buNrics and rtmissions giv 7.285.154 {439,384) 7.308.041 {531.004) £6.845.770 £6.777.037 OTHEX ATr4CILLARY INCOME 2021 3020 RcgistrJti(>n fees Oihtf 8,720 10.808 5,150 1.563 £19.528 £16.713 SUBSIDIARY 2021 2020 Turnover and oiber ineomc Administyaliv¢ eKp¢nditurE 1,620 112.02?) (4.3361 {105syproftl Bank Inieresi Recekved T&K on profit (4,336) (10.402) 203 ILossyprofbi foi ihe financial wi¢yJ (4.335) {10.199) Gift Aid d0tt8titsn io pami undewtskin8 (193,942) Rttaiued in $ubsidiary (4,335) (204.141) Nel Ls$ets £4,107 È8.442 The ChariTabl¢ Company has an invcsTh¢nt ID a subsidiary dertakn.ng which efjmpn a holding of I ordinary share of £1, being the whole of the issued 5hart capital of Ch¢aJD Trading Limiied Ilonn¢TIy Ch¢am Asia Limited). a company Tcgisiered in F8[and. As at 3l# Aiigu5t 2021. the cornpaDy had ner &wrs of £4.107 (2020= nei assets of £8,442). lJYfEREST REC£IVABLE 20?1 2020 Bank it)krest 9,506 DONATIONS 2021 2020 DOtionS received 4.315 s,orxi £4.315 £5.QOO 16
CHEAM SCHOOL EDUCATIONAL TrUST NOTES TO ACCOUNTS (contiDued) YEAR ENDED 31. AUGUST 2021 OTHER INCOME 2021 2020 Gov¢rnuKnt 177.78J 402,863 Rcni and Icllin8S MiscellAneoi]s 3.loj 1,299 5.041 11,892) £4.402 £3.149 ANALYSIS OF EXPENDITURE staff Costs Other Depreciation 2021 Total C05t of genertiDE fttThd$ Finan¢t costs Prepaid ftc diowi¢ S¢hool operatLAg costs Teaching Wclfat¢ Premises Supporl Gratiis Ttad]n8 expcndiftt l8.826 5.190 18.826 5.190 3.598.159 453.fl)I 561,414 565.917 572.247 18Y469 498,928 316.i54 783 4J36 63,421 15.9Q2 245.863 26.196 4.233,827 651.972 1.306,207 908.467 78i 4.336 Toiil ¢xpenditure £5.17.9.091 £1.599,135 £351,382 £7,129,608 7b. COMPA11471VE ANALYSIS OF EXPENDrruRE Staff Costs Other D¢prtcigtio 2020 Total Cost of generating fund5 Fina ¢osts Prepaid fet dJScOl S¢bool op¢ratiDg ¢o$ts Teaching WelfaTe Premises Suppory GTanlS Tradin8 expendimre 26.883 8,834 ?6".883 8,834 3,759,914 457.498 603.054 537.260 412.794 177.691 438.290 331.599 79,916 4,?52,624 635.189 1,282,427 89i.498 241,083 2,8C(I 2.8(H) Total txpenditUTe £5.357.726 £1.403.)2 £347.638 £7.I08.366 17
CHEAM SCHOOL EDUCATIONAL TRUST ,yo'rES TO ACCOUNTS (continued) YEAR ENI DED 31 AUGUST 2021 STAFF COSTS 2021 2020 Restted Wage5 and salaries Social seturily costs PensioTh contributiofts Oth¢r 5t3ff r¢l&ied costs 4.071.043 371.715 464,664 271.669 4,394.962 391,025 512,369 59.370 £5.179.091 £5.357,726 Temitnaiion payments of £50.0 were incuTfEd during the year (2020= £19.865}. Other sraff Telaied c0515 were Previously included in wa8t5 and salarics and havc been separately dis¢105ed within the staff ¢osts note totr the year ended 311t kn8llSt 2W21. Prior year figures bave b¢¢nT¢yated a¢¢ordingly. No. The aveta8¢ number of employ¢es itt Ihe year w&s: Teaching Others 98 67 165 Th¢ Dumber of employe¢s whos¢ emoluments ¢xr¢d¢d £60.C £60,000 - £70,( £70,000 - £80.000 £80.(K)0 - £90,000 £90,(X)O - £Ioo,000 £ioo.000-£iio.o £110.000- £120,0(K) Teacher5. Pe ThE School used 10 panicipal¢ in the T¢a¢h¢rs' Pension Scheme l*h¢ TPS.) for i4s leaching starr, bui has sinc¢ left. The pen$ioTh charge for this yeai ine14Jdts £011 {2020.. £184,768) contributions payable to the TPS and at the year4nd £nil12020.. £NI) Ivas accwcd in Tespeci of cootribuiioDS io this scbeme. The TPS 15 ao twfiInd muiti-cmployer d¢fthed bcn¢fits pension s¢hcm¢ governed by Thc Teachers. Pensions Regulations 9010 (as amended) and The Teachets. PensiorE Scheme Regulation5 2014 (as om¢ndedl. Members conrribute on a "pay a5 you go" basis with conrribiitions from members •nd the employer bein8 credii¢d w the Exchequet. lietirement aod 01 l10t¥ btuefjts are paid by public hnds PTovidcd by Parliamenl. Tlje employer 0111libIlOrt late Is by the otcrttsry of stalc followLng schem¢ valuations undcrtllkcn by lh¢ Government ActU8ry'5 Department. The most reccni actuarial valuarioD of tbc TPS was prcpared as at 31" m¢ 2016 aiid th. Vtjluntiott Report. whieb publishc4S in Mor¢h ?019, ¢oJJrUm thjr tho cmployor fjDnrriburioll Tato for Ihe TPS would hntrease from 16.4•A u) 23.6% from 1$ Sepiember 2019. Employets ar¢ also r¢quiFed to pay sth¢me administration l¢vy of 0.08•A giving 3 totsl employer conthbution ra¢¢ of 23.68°h. The 31° Mar¢b 2016 VaiuarioD Report was prq)ared ib aceord8n¢e the benefits set out in the s¢hemE reguiaiLOnS and under the approach specified in the DLteciJous, as they appljed at 5 March 2019. However. the assurnptions w¢[¢ ¢on$i1kl and sct by lh¢ Depameni for E(1tiOn prior to Ihc Tulin8 in the'McclouS•¢gtanl 18
CHEAM SCHOOL EDUCATIONAL TRUST NOTES TO ACCOUNTS (continuEdl YEAR ENDED 31° AUGUST 2021 STAFF COSTS (contin•e) case.. This tsse has required th¢ Courts io conskder Cases regardirtg th¢ implemEntaiion of ihe 2015 refornis to Public Serviee Pensions includin8 the Teachers. Pcnsions. On 2T& June ?019 rhe Supretne Cotsrt denied the goveTTrmEnt pemiission to appeal the Court of AppEal'5 judgment that iran511?onal PTOVl5ions intyoduccd to tbe T¢fomied pension hcm¢5 in 2015 gave rise to unl8wful ag¢ discrimination. The 8overnmeTht IS Tespeciin8 Ibe CoLLrt's decision and h&$ said it will engage fvlly with lh¢ Employmcnt Tribunal as w¢ll as ernployer and Tnemttr rcpresentativ¢5 to agrtt how die discrirninalioos will b¢ remedied. The Bovcmment announce41 on 4 Febnjary 2021 thai It inrends ro proceed [h i deferred ¢hoi¢e ld¢[pin under which rD¢mbeT5 will bE abl¢ io ¢hoose either l¢gary or reftsTmed scheme ben¢filS ID respeci of their seie¢ during th¢ period betw¢¢o IA April 2015 aod 31° Mar¢FL 2022 ai the poiul th¢y b¢eom¢ payable. The TPS is subjecr 10 a cost cap mechanism ivhich was put in place io proipxt taxpayers agairt51 unforeseen Changes io s¢heme ¢ost5_ Th¢ chiefsr¢Thry to th¢ Tieasury. havin¥ ID 2018 antK>uncd thai th¢T¢ would b¢ 8 revjew of this cost cap mechanisn?. sn Janimry 2019 announced a paust to the cost mechanism following the Court of App¢)I's ruling in the Mccloudlsargeant Ca5E and until there is ccrtainry about the value olpension5 to eroploytes from April 2015 onwards. The pau% was lifted In July 2020. and 8 consultOn wa5 launched on 24 Jtsne on pt(tposed ¢harJg¢s to Ihe cosi toniiol mechanism folloiving a review by the Government AcNary. The ¢LNJ$ulrntion t1ts5ed 10 response OTh 19, August 2021 and the Government is currently analysing thc resFKn5¢S. ID view of the above tuliDg5 and dccisioDS rhc ossumpiion5 Used in the 31" March ?016 Actuarial Valuation may becom¢ irtappropftaie. In this scenario. a valuaiion prepared in accordance with wised benefits and suitably revised a$sun)piion5 would yield diff¢Tenr rewlts than those Conuincd in the Acluarial Valuaiion. Until the Cost cap mechaoism i¢tri¢w is ¢ompleied it is not possibl¢ to conclude on aoy fmancial impacl OT future ¢hangt5 10 Ihc coniribuliotj ra1¢5 of ih¢ TPS. A¢¢ordingly. no proYi5iOTL for any additional past b¢ntfii pen*on cosi$ Is Included Lbl these financial 51alements. An alt¢mative defined contritAJtion pett5ion scheme was put in place for lh¢ benefLL of teaching staff ai the Sth¢)ol folloiviDg wiihdrdwal from th¢ TPS. Awiva Pension TnisL for In A5 the replacein¢nl for tbe TPS for ttacbing staff. ¢b¢ School ha5 parricipated ID g defined CODtributiott scheme with the Aviva Pension Trnst for Indepet5denl Schools. During the )tar £608,315 (2020.. £252,709) was recognised as an expense In the Consolidated Staiemenl of Finan81 Acuvilie5. In¢0 rated As50ciat on 3Jaio sch1$ Retiremetkt The School also participates Ln a defined contribuiion sehemt iviih rhe Incorporated Association of Preparatory Schools Reliremtn¢ Plan for cenain nOn-tChing 5¢aff. Dunng the year £137,891 (2020.. £58,597) wa5 recognL5ed a5 eip¢#se In th¢ Con501idated StatemeE)t of Financial A¢tivities. Nesi Pension Scheme Th¢ School a150 participates in the Nc5t Pension Scheme. a 8overnmcnt batked defincd contribution schem¢, for thc b¢nefit of teTtsirt non-teaching swff. DuTing the year £JO.842 (2020". £16,295) was recognised as in expense in the CoD5olidaied Suiement of Financial Aciivitics. At the ycar-end £70.294 (2020.. £64.4J9} wa5 payable in respe£1 of contribution5 to the defined contsibution pension s¢hemes thai S¢hool partiripales in foT the bcnefil of its staff. Ntsne of the Go¥ernoTS received aThy remneration. Oji of pocket expr[ paid 10 Governor5 durillg th¢ year were £639 (2020.. £nil). The SchoDI h35 purcha5td Governor's liability iry5uranc¢. As ihc premium is Inclded with other in5urnnce cosis, it is noi 5epaTate]y ideniifthble. 19
CHEAM SCHOOL EDUCATIONAL TRUST OTES TO ACCOUYTS IcoAtiAued) YEAR ENDED 31" AUCUST 2021 EXPENDITURE 21121 2020 Expenditure includes". Op¢ratJn8 Icase paymeDts AudÈior's r¢ruunthtio 65,959 17.58Q 1.320 351,382 117.S66 15.6Crf) 630 347.638 Audit - Other services Deprcciation 10. TANGIBLE FIXED ASSeTS The moveTneThts of tsTh8ible fixed assets are as follow5: Croup and khool Freehold laDd and freehold buildings FurDlture Fittin8& equipment and motor v¢hitle¥ Comptsters Total COST OR VALUATION At IX Septcmbcr 2020 Additions Disposals 13.977,208 2.880 1.445,640 166.310 526,369 56,541 15,949.217 225.731 At 3111 Augu512021 13.980,088 .611.950 58?.910 16,174,948 DEPRECJATION At 151 Septeinber 2020 Chargc for the y¢ar Oll disposals 3.419.479 ?06.611 917,704 102.7i I 438,211 42.040 4.775.i94 351,i82 At 31# August 2021 3,626.090 1.020.43i 480.2)] 5.126.776 I ET 8OQK VALUE t 31° Au8ll$t 2Q21 £10.35i.998 £591.515 £102.659 £11,048.172 AI 31X Augus(2020 £10,557.729 £527,936 £88,158 £11.173.823 The loak disclosed in Noi¢ 13 below is secw¢d on the abov¢ ptopety. 20
CHEAM SCHOOL EDUCATIONAL TRUST NOTES TO ACCOISNTS (continued) YEAR ENDED 31" AUGUST 2021 PREPAfo FEES Tbe rnovemcnts on the SchryJl'5 PTcpaid fees schtme during the year werc follows.. Group nd School 2021 2020 Balance #i I Septemb¢r 2020 New contracts Amoun¢ aGcnJ¢d to conifdcts Refvnded 10 parents 675,813 105,145 5.190 1,056,027 327,060 8.834 (291.593) 786,148 I.IW,328 ArnOnts utilised in payment of fee5 {387.096} 1424,515) PAIAnte at 311¢ August 2021 £399.052 £675,813 Assuming pupkls m21 with the School, prepa]d fees will bt applied as follows.. 21121 2020 Within one year Bchvcen two artd five yeats After five years 2iO,024 149.028 367,641 308.17? £399,052 £675,813 12. CREDJTORS: . Due within one yer Groyp Sthool 2021 2020 1021 2020 "Fees ceiVed ID advatttt £594.983 £522.723 £594.983 £522.723 Trad¢ ¢reditotS Otber lax and social security Oiher cieditoys ACenlS Amoiints owed to wup undertskings 116.68.3 115.996 240,826 71.150 1 19.393 101.488 241.585 138.836 16,683 115,996 240,826 68.9QO 119.393 101,488 241.585 108.836 £544.655 £601,301 £542,405 £601,301 School fccs r¢¢eiYed Tn •dvxn¢e r¢latts to ftts for the next school year, which some p.arents pay ID adyallct.. 21
CHEAM SCHOOL EDUCATIOP4AL TRUST NOTES TO ACCOUNTS (continued) YEAR ENDED 315t AUGUST 2021 130 CREDITORS: _ Due after one year Croup Srhool 2021 2010 21J21 2020 Prepaid ftts Fee deposils Bank loans 149.029 349,385 308.17? 34?.393 250.1 149.029 349.385 308.179 347,393 2iQ.OCKI £498.414 £905,565 £498.414 £905,565 J3b BANK LOA]Y Group 5t.hool 2021 2020 Du¢.. - between one 8nd hvo years - beiw¢¢n two and five years 250.000 250,000 300.0(M) Creditors due wiihin one year 450,(K)O 450,000 £550,OCKJ Thc above 108n. which is securcd on the Schcol's frtchold property. consists of £225.000 whirb bears inicrest at 2.3 /0 above th¢ LIBOR rate 8nd £225.(NIO which uow kn interest al a fix rate of 3.260/4. The loans commen¢¢d in February 2013 with a 9-year tErn and arc therefore both finally repayable in February 2022. 14. GENERAL FUNDS General funds be applied to ihe School's OP¢Talions at dis¢i¢iioD of the governots. OTHER FUNDS JS. LEANING SUPPORT FUND The fund consists of donaiioD5 of £60.(th ihat are now reduced to.£48.823 which are being used" for learrtiug support: £783 was spettt during the year. 22
CHEAM SCHOOL EDUCATIOP4AL TRUST NOTES TO ACCOUIYTS (ci>*tinued) YEAR ENDED 31" AUGVST 2021 16a. ALLOCATJOP4 OF COPISOLtDATED NET ASSEIS BY FUND Net current asset Creditors: due after oAe y¢Ar Fixed assets 2021 Total General Fund L¢&tning SUp)nFu#d 11.048.17? (410.833) 48.823 (498,414) 10.108,926 48.823 £11.048.172 £(392.010) £1498.414) £10,157,749 16b. COMPARATIVE ALLOCATION OF CONSOLIDATED Nrf ASSEI"S BY FUND Net turrtrtt as5elsl {IDabililrts) treditors: du¢ ifterone year Fixed 855tt$ 2020 Total G¢n¢r31"Fund Leaniing Support Fwid 11.173,823 (265.058) 49,606 (905.5651 10,003,200 49.606 £11.173.8?3 £(215.4521 905.5651 £10,052,806 17. OFERAThNG LEASE COMMITMENTS The S¢hool the ftsllowithg #1 oper¥iing lease ¢ommitm¢nts due Js follows.. Group and SEhool 2021 21120 L65S than one ye Two (o flve years Over five year5 55.515 108,380 648 65,959 153,684 10,860 £164.543 £?30,503 18. RELATED PARTY DISCLOSURES Th[¢¢ Govemm hav¢ thildr¢n at the School aDd pay in IiDe with othcr parents. There were no other Telatrd party transactions in the year eIed 31# A8[ 2021. 23